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Sam has an income of $20 and would like to buy a combination of apples and oranges. Apples cost $2 each, oranges $1 each. *

Sam has an income of $20 and would like to buy a combination of apples and oranges. Apples cost $2 each, oranges $1 each. * draw a budget constraint that reflects these prices and the income (5 points) * what happens if the price of oranges doubles to $2? Draw a new budget constraint into the same graph (5 points) * draw the graph for a) once more and add a standard indifference map, which represents neither perfect substitutes nor perfect complements. Indicate the utility-maximizing solution on your graph. (5 points) * Assume that the marginal utility of apples is at 10 and the marginal utility of oranges is at 8. Given the prices and the budget for part a), what should Sam do to maximize utility? Explain briefly

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